Points to Consider When Incorporating a Company

Company incorporation is one of the most important steps entrepreneurs take. However, failure to establish the correct legal infrastructure can lead to serious problems in the future. In this guide, we cover the fundamental legal points to consider during the company incorporation process.

## 1. Choosing the Type of Company

First, it must be decided which type of company will be established. Under the Turkish Commercial Code, there are joint-stock companies, limited liability companies, sole proprietorships and cooperatives.

**Limited Liability Company:** Minimum capital of 10,000 TL, the number of shareholders cannot exceed 50. Liability is limited to the committed capital. It is the most commonly preferred type of company for small and medium-sized enterprises.

**Joint-Stock Company:** Minimum capital of 50,000 TL, the formation of a Board of Directors is mandatory. It is suitable for large-scale enterprises and publicly traded companies.

**Sole Proprietorships:** Merchant companies (ordinary limited partnership, limited), collective and limited partnership companies. Partners are liable for the company's debts.

## 2. Preparing the Articles of Association

The company's articles of association are the fundamental norm of the company. The purpose and field of activity, capital structure, management body and profit distribution must be clearly determined. The articles of association must be signed before a NOTARY and registered in the trade registry.

## 3. Trade Registry Registration

Following the signing of the articles of association, registration and announcement procedures in the trade registry must be initiated. Companies that are not registered cannot acquire legal personality. Registration with the chamber of commerce, notification to the tax office and SGK notification must be made at the same time.

## 4. Tax Registration and Financial Obligations

The company must be registered with the tax office and tax obligations such as VAT, corporate tax and withholding tax must be determined. In addition, it should not be forgotten to obtain a municipality license and make notifications to other relevant institutions.

## 5. Partnership Agreements

In companies with more than one partner, partnership agreements are of great importance. The rights and obligations of the partners, profit distribution, partnership exit mechanisms and dispute resolution methods must be clearly regulated. The rights of the legal entity must be protected.

## 6. Protection of Intellectual Property Rights

The company name, logo and trademark registration must be made at the incorporation stage. The trademark application to be made before TÜRKPATENT is critically important for the protection of the company's commercial identity.

## Conclusion

Carrying out incorporation procedures with professional legal support contributes to the healthy growth of the company. As Ehil Law Group, we are by your side at every stage of the company incorporation process.